Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
RISHIKESH
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE
AWARD OF THE DEGREE OF
MASTER’S DEGREE IN BUSINESS ADMINISTRATION
H.N.B.GARHWAL UNIVERSITY,SHRINAGAR,
UTTARANCHAL
SESSION-2004-06
OIMT-RISHIKESH
PROJECT REPORT ON MARKETING
STRATEGIES FOR AMUL CHOCOLATES
ACKNOWLEDGEMENT
Thanks a lot.
SUNIL PANDEY
MBA IV SEMESTER
EXECUTIVE SUMMARY
The Rs 2,500-crore Gujarat Co-operative Milk Marketing Federation Ltd
(GCMMF), or Amul. Amul began the dairy cooperative movement in India
and formed an apex cooperative organization, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which is jointly owned by some 2.2
million milk producers in Gujarat, India. Now, not only had the milk
collection and the number of co-operative members increased but Amul
were also giving a stiff challenge to the multinationals.
The main objective was to know the market position of Amul chocolates
and to know strategies of their competitors. The Amul chocolate market is
segmented in two parts that is SVS Marketing and RKJP Marketing.
Currently Amul is having five variants under his umbrella brand that are
Pure Milk Chocolate, Fruits and Nuts, Fundoo, Bindaaz and Almondbar, In
an attempt to boost sales, the company has launched three new chocolates in
Market under the brands Fundoo, Bindaaz and Almond Bar. While the first
two have been priced point at Rs 10 for a 30 gm stick, Almond Bar carries a
price tag of Rs 10 for a 35 gm chocolate, Fundoo is available in Rs 5 price
point also. This is one of the shortcomings as Cadbury have price points
from Rs 5 to 50 ranges. Amul also have very few variants as comparison to
Cadbury India. The company's festival season pack "Rejoice" now comes
with six chocolates in the city up during the festive season last year.
The problems that these Dairy chocolate (Amul) giants faced were in the
way their chocolates would be displayed in urban, premium and super
markets. The chocolates were kept without bottlers and dispensers and
without the proper cooling equipment the chocolates in almost all the places
would melt since they would get heated at 40 C and would lose its taste.
Thus the superior product they would aim to tantalize the market with,
would not work with bad pieces and melting disadvantages by only
providing dispensers but special types of table top coolers as Cadbury
preserve its product even in the remotest of rural outlets and create brand
visibility through the colorful display options.
These coolers today help in sales generation and brand visibility not
ignoring efficient cooling that protects and preserves the real taste of
Cadbury' s chocolates in a very cost effective manner, Amul should not
overlook this fact.
TABLE OF CONTENTS
CHAPTER NAME
PAGE NO.
CHAPTER NAME
PAGE NO.
CHAPTER 7 : SUMMARY 65 — 71
7.1 SWOT ANALYSIS 65 — 67
7.2 FINDINGS FROM RESEARCH WORK 68 — 69
7.3 RECOMMENDATIONS 70 — 71
LIMITATIONS 72
LEARNING EXPERIENCES 73
REFERENCES/ BIBLIOGRAPHY 74 — 82
ANNEXURE/APPENDICES 83
THE MAIN OBJECTIVE OF THE PROJECT
The main objective of the project is to know the market potentials and
awareness about new variants of Amul chocolate in Rishikesh City.
To find out the potential market mainly for new variants (like Fundoo,
Bindaaz).
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF)
is an India’s largest food product marketing organization. It
is a state level apex body of milk cooperatives in Gujarat
that aims to provide remunerative returns to the farmers and
also serve the interest of consumers by providing quality
products, which are good value for money. It is respected
for its credentials even after 56 years after its inception.
The Co-Operative movement started with two villages and 247 liters of milk
in 1946. It has become a rupee one billion-business now. The success of
Amul explains the reasons for this remarkable growth. Following the
strategic advice from the freedom fighters like Sardar Vallabhai and Morarji
Desai, the Co-Operative movement started with the slogan “Remove
middlemen” in Gujarat by the village masses. The collective farmers
succeeded in making the British government accept the concept of Co-
Operative societies. The Kaira District Co-Operative Milk Producers union
Ltd., Anand was born on Dec 14,1946.
Figure 1
BACKGROUND
Q.- HOW DID THE AMUL BRAND BECOME WHAT IT IS?
ANSWER- we must journey back in time, to the history books, to the time
of India’s independence because Amul’s birth is indelibly linked to the
freedom movement in India. It was Sardar Vallabhbhai Patel who said that if
the farmers of India are to get economic freedom then they must get out of
the clutches of the ‘middlemen’.
The decision was taken that day in January 1946: Milk producers’
cooperatives in villages, federated into a district union, should alone handle
the sale of milk from Kaira to the government-run Bombay Milk Scheme.
This was the origin of the Anand pattern of cooperatives. The colonial
government refused to deal with the cooperative. The farmers called a milk
strike. After fifteen days the government capitulated. This was the beginning
of Kaira District Cooperative Milk Producers’ Union Ltd., Anand, registered
on 14 December 1946.
ORGANIZATIONAL ACHIEVEMENTS
GCMMFL, Gujarat Co-Operative Milk Marketing Limited is being driven
by the vision of the thousands of Gujarat Farmers. This specific organization
has a purpose for its existence. GCMMFL better described as the one
cooperative organization working for the well being of millions of farmers.
The commitment of GCMMF to the village farmers and vice versa is
tremendous. GCMMF changed the operations looking into the needs of the
farmers. Today GCMMF is ahead of all its competitors meeting the
expectations of their suppliers and the customers.
While most people agree that the Amul ads were at their peak in the Eighties
they still maintain that the Amul ads continue to tease laughter out of them where
does Amul's magic actually lie? Many believe that the charm lies in the catchy
lines. That we laugh because the humor is what anybody would enjoy. They don't
pander to your nationality or certain sentiments. Its pure and simple everyday
fun.
Today, after becoming everyone's favorite little "utterly buttery delicious" girl
through print and television ads, the Amul Butter Girl has finally come alive
PRODUCT RANGE
BREAD SPREADS:
• Amul Butter
• Amul Lite Low Fat Bread spread
• Amul Cooking Butter
CHEESE RANGE:
PURE GHEE:
MILK POWDERS:
FRESH MILK:
AMUL ICECREAMS:
BROWN BEVERAGE:
MILK DRINK:
Types Brand
Molded chocolates Dairy Milk, Truffle, Amul Milk
Chocolate, Nestle Premium, Nestle
Milky Bar, Nestle Classic
Count lines 5 Star, Perk, Kit Kat, Picnic, Munch
Panned products Gems (Cadbury), Nutties, Marbles (Nestle)
AMUL CHOCOLATE
“GIFT FOR SOMEONE YOU LOVE”
AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids,
and Chocolate mass
Composition:
• Milk Fat 2%
• Sugar 55%
• Total Fat 32.33%
• (Milk Fat + Cocoa Fat)
• Cocoa Solids 7.5%
• Milk Solids 20%
AMUL FUNDOO
Choti bite. Badi Masti.
ALMONDBAR
BITE BITE MEIN DUM
Rich and Chewy Almond Nougats Coated with Rich Milk
Chocolate.
Product Specification:
Meets all requirements under the PFA for boiled sugar confectionary.
DIFFERENT VARIANTS OF AMUL CHOCOLTES
AND THEIR RELATIVE PRICING
2. Amul Milk chocolate 18g Rs. 5 Rs. 4.56 Rs. 4.34 15.1 %
3. Amul F&N chocolate 30g Rs. 15 Rs. 13.87 Rs. 13.21 13.5 %
Amul
7. Almond Bar 35g Rs. 10 Rs.9.00 Rs. 8.57 16.7 %
Table 2.
RESEARCH METHODOLOGY
OBJECTIVE OF RESEARCH
RESEARCH DESIGN
SAMPLE DESIGN:
Of the total sample design Customer and Retailers survey
was formulated on basis of Selective sampling and the Distributors
survey was based on total Census sampling –
REGION WISE
By region wise the survey was carried out according to beat plan of
AMUL in Dehradun.
Which was divided into two Plans
1. SVS PLAN. 2. RKJP PLAN.
SVS PLAN AREAS
Trivani ghat
Subhash chok
Bankhandi
Dhal wala.
Primary sources —
Which include Questionnaire, Direct interview
and data collected on personal observation. These are the data,
which are collected on self-basis.
Secondary Data —
Which Include Journals, Magazine, News Paper
And Net. These are the data, which are collected o from the
secondary sources, which are made available by other organization
or company through their annual report’s or journals or news
magazine.
TOOLS OF ANAYSIS
The Major tools of analysis were
Questionnaire
Direct Interview/ Observation Method
DEALERS
1. QUESTIONNAIRE RETAILERS
CUSTOMERS
All the three questionnaire are attached with annexure
2. OBSERVATION METHOD –
During the research work, I opted both the questionnaire and observation
method.
In observation cum interview method I have visited to different
distributors and retailer in and around Dehradun.
Who deals with different brand chocolates and during
Interview session, I interacted with them and put various relevant
questions related to Chocolates Retailing and tried to obtain data
related to Consumption of Chocolates in Rishikesh Market area.
And analyzed and compiled the provided data through Graphical
representation.
CUSTOMERS SURVEY
AFFINITY TOWARDS CHOCOLATES
97%
YES
NO
3%
USAGE RATE
60 60
50 48
40
Daily
30 30
Twice in a week
20 Weekly
12 Occasionaly
10
0
Daily Twice in a Weekly Occasionally
week
20%
Waffers
49% Nutties
Pure Chocolate
31%
WAFERS 30 20
NUTTIES 47 31
PURE CHOCOLATE 73 49
23%
53% AMUL
NESTLE
CADBURY
24%
ANALYSIS: Cadbury is the most popular brand in the market and is the
biggest competitor of Amul Chocolates, which holds more than
50 % share in Total market of Chocolates.
CONSUMER AWARNESS
Consumer Awareness
NO
12%
YES
88%
78
80
70
60
50 44
Very Good
40 Satisfactory
30
Poor
20 10
10
0
Very Good Satisfactory Poor
ANALYSIS: The Graph shows that image of Amul Chocolates are quite
Satisfactory in the eye of Consumers Surveyed. The
company Should require improving its Brand Image in
Chocolate Market By increasing satisfaction level of
consumption.
REASONS FOR BUYING AMUL CHOCOLATES
42%
Good Taste
11%
Brand Name
Advertisement
Reasonable Cost
12%
35%
ANALYSIS: This shows that Price is not the reason which appeals
Consumers to Buy Chocolates but its Good taste and
Brand name attracts Consumers, whereas Advertisements
and Reasonable can be the secondary factor to buy
Chocolates.
BRAND LOYALTY
79%
YES
NO
21%
NO. OF PERCENTAGE
OPTION RESPONDENTS
YES 118 79
NO 32 21
80%
YES
NO
20%
NO. OF PERCENTAGE
OPTION RESPONDENTS
YES 120 80
NO 30 20
18%
29%
Change in Packaging
Change in Taste
Reasonable Pricing
53%
NO. OF PERCENTAGE
OPTION RESPONDENTS
CHANGE IN 35 29
PACKAGING
CHANGE IN TASTE 64 53
REASONABLE 21 18
PRICING
Brand Definition
Brand, An identifying symbol, words, or mark that distinguishes a
product or company from its competitors. Usually brands are registered
(trademarked) with a regulatory authority and so cannot be used freely by
other parties. For many products and companies, branding is an essential
part of marketing
Branding allows a company to differentiate themselves from the
competition and, in the process, to bond with their customers to create
loyalty. So a position is created in the marketplace that is much more
difficult for the competition to poach. A satisfied customer may leave. But a
loyal one is much less likely to.
Segmentation
The foundation of a successful branding strategy is compelling
segmentation, answering the following questions:
With whom are we have to build long-term relationships and on what
basis?
What will make these customers special to us, and what will make us
special to them?
Above all, how will we recognize them when we see them?
You can use at least four levels of segmentation:
Demographic segmentation.
Behavioral segmentation.
Needs and values segmentation.
Situational segmentation.
In more detail…
1. Demographic segmentation
This is the standard segmentation of the "broken down by age and
sex" variety. Additional demographic segmentations would include socio-
economic class, life stage, geographical region, number of people in a
household, income and, in business-to-business markets, industry
classification, number of employees and turnover.
Demographic segmentations tell about how to recognize people
but are much less helpful in identifying motivations. For instance, people in
a certain income bracket do not all behave the same way, nor do those of the
same sex or those living in the same part of the country.
2. Behavioral segmentation
Examples of behavioral segmentations would be Internet shoppers,
frequent flyers, night workers, and buyers of competitive products/services
or special offer seekers. They often tell you how and where to find people,
but not what to say to them when you do (except perhaps in the case of
special offer seekers).
4. Situational segmentation
It has been argued that the same people behave more differently in
different situations than do different people in the same situations.
Situational segmentations recognize, for instance, that when people have
plenty of time to browse the shelves they will behave differently than
when they are in a hurry. Indeed, they may be happy to buy products when
they are in a hurry that they would not dream of buying at any other time.
Next steps
Marketing mix is a set of marketing tools that the firm uses to peruse
its marketing objectives in the target market. Theses tool s can be classified
broadly into four Ps of marketing, Product, Price, Place, and Promotion.
MARKETING MIX
Figure 3.
PRODUCT –
Product is the offering that is made to customer, which satisfy
their wants. This is the most important tool that company uses to attract
consumer. As for Amul butter is their most profit-earning product as Dairy
Milk for Cadbury.
PRICE –
Price is the critical marketing tool. Price is namely the amount
of Money that customers have to pay for the product. It is only mix that
produces revenue for the company.
The two-price points under which Amul Chocolates are available are
Rs 10, and Rs 5.
PLACE –
A place is key marketing mix tool, stands for the various
activities the company undertakes to make the product accessible and
available to the Target Customers.
PROMOTION –
Promotion is an important tool, which stands for the
various marketing activities that the company undertakes to promote its
product to the target market.
As Amul now provide schemes to Retailers of 1 unit Free with 20
units of Amul Chocolates.
Promotional Mix
Promotion consists of those activities that are design to bring companies
goods or services to the target customers.
1. ADVERTISING:
2. SALE PROMO:
3. DIRECT MARKETING:
Public relation can reach many prospects who might avid sales people
advertising, a potential for dramatizing the company product. A well thought
public relation program coordinated with promotion mix elements could be
extremely effective.
ADVERTISING BRAND
Objectives of advertising
Some agencies offer eye-tracking research that tells the advertiser which
part of a printed advertisement held the consumers' attention. Consumers'
eyes often dart around a printed advertisement, missing the main messages
& the brand identification, because they cannot find its focal point or any
point of entry. The ideal printed advertisement provides a clear flow for
the consumer to follow.
Packaging
The Austrian opinion researcher Dr. Helene Karmasin illustrated the
importance of the connection between brand name goods and consumers.
Her key argument is “consumers buy packages”. Of course it is not the
package itself that she means, but rather the hidden meaning of the package.
Every product has not only a functional value, but also serves the
emotional needs of the consumer - and this is where packaging plays an
important role as a buying incentive.
Definition
Materials used for the containment, protection, handling, delivery and
presentation of goods and the activities of placing and securing goods
in those materials.
Measurement
The three elements to research within packaging are:
Physical build - which denotes the quality/trustworthiness of the
brand
Aesthetic design - which denotes the core values of the brand
Informational content - which can denote both the trustworthiness
and core values of the brand, but which is usually treated functionally
DISRIBUTUION CHANNEL
WHOLESALER
MANUFACTURER C&
DISTRIBUTORS
RETAILERS
CUSTOMERS
A distribution channels performs the works of moving goods from the
producer to consumers. It overcomes the line, place and increases the utility
of goods and services.
The Supply Chain Of GCMMF is Given In Fig.4.
Figure 4.
FARMERS
Village
Village Cooperative Cooperative
Local Restaurants/ Milk Sold to
Societies (with Societies (without
Others Milk Village and Local
Chilling Chilling
Related Business Residents
Units) Units)
Competition:
Baby food and Instant coffee are categories where brand loyalties are
very strong and Nestle is the market leader. HLL is a significant competitor
to Nestle in instant coffee; while Heinz is the main competitor in the baby
foods market. The market for culinary products, semi-processed foods such
as noodles, ready mixes for Indian ethnic breakfast and sweets, is largely an
urban market. HLL and Indo Nissin Foods are the main competitors in these
product segments. Nestle has also achieved a significant 25% share in the
chocolate/confectionery market. The company has recently expanded its
dairy products portfolio to include, milk, curd and butter. The company also
forayed into the bottled water segment with the launch of its Perrier brand
in the premium mineral segment and Pure Life in the purified water
segment.
DETAILS OF DISTRIBUTORS
Mr. Pankaj,
Tilak road
Johar complex,Rishikesh.
Mr. Parth,
Sturdia colony, virbhadra road
Rishikesh
Bharat Enterprises,
35/43, Railway Road,
Rishikesh
DISTRIBUTION CHANNEL
WHOLESALER
MANUFACTURER
C&F
DISTRIBUTORS
RETAILERS
CUSTOMERS
GHAZIABA
D
DEPOT
ROORKEE DISTRIBUTORS
MANUFACTURER DEPOT
KANPUR
DEPOT
WHOLESALER RETAILERS
CUSTOMERS
WHOLESALER
MANUFACTURER C&F
DISTRIBUTORS
RETAILERS
CUSTOMERS
SERVICES PROVIDED BY DEALERS
AMUL
No services are provided.
CADBURY
Sale Units Services
3000 - 5000 Non- Cooling Dispenser
10,000 – 12,000 Cooling Dispenser.
12,000 & above Fridges
NESTLE
Credit Facility
Dispenser
Replacement.
CADBURY
Gita Parth Agency – Ordered booking
NESTLE
Bharat Enterprises – Ready stock
DISTRIBITION OPERATION
AMUL
SVS Marketing –
Inventory/Days – 10 Days
Max. Limit – Rs. 75,000
Sales/Month – Rs 25,000
RKJP Marketing –
Inventory/Days – 15 Days
Max. Limit – Rs. 60,000
Sales/Month – Rs 15,000
CADBURY
National Agency –
Inventory/Days – 30 Days
Max. Limit – Rs. 20Lakh
Sales/Month – Rs 10Lakh
Seasons Sales Rs 12 Lakh
NESTLE
Bharat Enterprises –
Inventory/Days – 20 Days
Max. Limit – Rs 10 to 12 Lakh
Sales/Month – Rs 12 Lakh.
SERVICE COST
AMUL
NO SERVICES
CADBURY
a) Dispensers
b) Glass Top Fridges
NESTLE
a) Dispensers – Rs 250 to 300
b) Glass Top Fridges – Rs 6000 to 8000.
AMUL
Consumer Awareness, Dispenser Availability,
And Schemes for Retailers and Consumers
CADBURY
Publicity
NESTLE
Product Penetration, Classic in a Pack of 40gm and
28 gm, good adds in comparisons to Cadbury.
GRIEVANCES
AMUL
No Replacement by Company ( 20% hardly)
Pressure Stocking ( leads to expiry as of low sales
and high inventory)
Less Variety.
CADBURY
Pressure Selling
Lots of chances of Damages
Pressure to keep high Inventory.
NESTLE
Satisfied
SWOT
The term SWOT analysis on elaboration is self-explanatory term in which
S stands for Strengths, W Stands for Weakness, O Stands for
Opportunities, and T stands for Threats.
The Words Strengths here mean what are the strong areas where
company is well ahead of its competitors and due to which the image of the
company is strong in the market.
The word Weakness means what are the areas where company is
trailing from its competitors.
The word Opportunities means what are the areas the company is
having chance to be well ahead from it’s competitors by making some
changes or by adding some attributes to it’s brand.
The word Threats means those areas that are the acting as negative
ones for the company and positive one for its competitor.
WEAKNESS –
• No advertisements and promotions are made for Amul
Chocolates.
• Less number of variant in chocolates, as just only five
variants is present at latest.
• Absence of Customers Schemes.
• As per our survey, retailers list a credible
Replacement policy as a factor very high on their wish list.
They would be willing to make further investments only for
that brand which offers replacement facilities. Amul has no
replacement policy.
OPPORTUNITIES –
• Packaging can be made more attractive and Glossy as it
affects the psychology of a consumer.
• Good market penetration made by their dairy products,
chocolate segment can make food use of it.
• Can try to create Brand loyal customer
• Lots of scopes of improvement like in the field of
Distribution, Sales Services, Credit sale.
• Retailers now demand freezers without having to pay any
deposit. This is especially true of those retailers who already
stock one or the other
THREATS –
• Low Market Coverage.
• Provides no services like Dispenser, Visi coolers.
• Retailers and Distributors not Satisfied with company
Services unlike Cadbury and Nestle
• Usually Supply of old dated Chocolates.
SWOT Analysis
STRENGTH –
• Brand leader in noodles (Maggie) and coffee (Nescafe)
• Satisfied middleman
• Brand ambassador like Rani Mukheerje
WEAKNESS –
• Profit margin need to be revised
• No innovation or new variants
OPPORTUNITY –
• All brand not successful
• All variants not successful
THREAT –
• Tough competition from Amul and Cadbury
• Low profit margin to retailer’s
FINDINGS
In this project we covered Dehra Dun city and the total sample size was 205.
Which includes 150-customer survey, 50 retailers survey and 5 Distributors.
The product under study was Amul Chocolates especially newly launched
Variants Fundoo, Bindaaz, and Almond Bar.
The whole Amul market for Dehra Dun Valley was segmented into
two parts
SVS MARKETING
RKJP MARKETING
RECOMMENDATIONS
As the Company Amul Are taking some efforts but still it should consider
some suggestion, which I intended to put forward to the organization this,
have been developed through discussion with retailers, customers and
dealers while on survey of Amul chocolate in Rishikesh.
LIMITATIONS
Cadbury and nestle didn’t had any exact figure that how
much sale of which variant are contributing monthly.
LEARNING EXPERIENCES
ANNEXURE
CUSTOMER’S QUESTIONNAIRE
8. With increase price will you still buy your favorite chocolate?
10. Do you feel that there should be any improvement in Amul chocolate?
a) Change in packaging b) change in taste c) reasonable pricing
PERSONAL DETAILS
Name: Age:
Address:
No. of family members: Phone No.:
Your monthly Savings: Your monthly Expenses:
RETAILER’S QUESTIONNAIRE
8. During which month do you feel that the sale of Amul chocolate increases
most?
a) January to April b) May to August c) September to December.
10. Do you feel that there should be any improvement in Amul chocolates?
a) Yes b) No.
PERSONAL DETAILS
Name: Age: Phone No:
Shop Address: Your monthly expenses on chocolates:
QUESTIONNAIRE OF DISTRIBUTORS
6. Profit Margin
(a) Distributors (b) wholesalers
(c) Retailers (d) salesman
7. Stock delivery pattern.
(a)Ordered booking (b) Ready stock
8. Coverage
(a)Total Retailers (b)Total Wholesaler
10.Mode of payment.( w / r / s)
(a) Cash (w / r / s)
(b) Credit (w/ r / s)
i) Cheque (w / r / s) (ii) Demand Draft (w / r / s)
(c) Credit Period Received
i) wholesalers (ii) retailers (iii) salesman
11.Mode of Receipt. (W / r / s)
(a) Cash (w / r / s)
(b) Credit (w/ r / s)
I) Cheque (w / r / s) (ii) Demand Draft (w / r / s)
(c) Credit Period Given.
i) Wholesalers (ii) retailers (iii) salesman
13. What are the Services that are Mostly demanded by supply Chain (r/w/s/c)?
14. Schemes
a) Wholesalers/salesman
b) Retailers
c) Customers
19. Grievances.
REFERENCES
ARTICLES/JOURNALS/BOOKS
From An Article By Mini Varma
Published In The Asian Age On March 3, 1996
Annual Report Of Gcmmf 1999
Business Today September 30,2001
Phillip Kotler, Marketing Management.
WEBSITES
Www.Amul.Com
Www.Indiadairy.Com
Www.Indiainfoline.Com
Www.Nestle.Ca
Www.Google.Com
Www.Cim.Co.Uk
Www.Cadburyindia.Com